There is no contradiction in the apex bank?s ?principle of financial inclusion? and awarding full-fledged banking licences to only two applicants out of the 25 players as the IDFC and Bandhan met the ?fit and proper criteria?, former RBI governor Bimal Jalan said on Monday. ?…This scrutinised criteria is to make sure that the other people?s money which one bank deals with are disbursed, are allocated in a manner that is appropriate and fit and proper,? Jalan said. The former RBI governor was replying to a question on whether giving banking licences to only two players?IDFC and Bandhan Financial Services?out of the 25 applications is contradicting the central bank?s financial inclusion drive. Significantly, Jalan headed the panel, which had scrutinized applications for the new banking licences. Ending a process that began three years ago, the RBI on April 2 handed out just two licences, leaving out notable biggies such as Reliance Anil Ambani Group, Birlas, Bajaj Group, among others. Defending handing out just two licences, RBI Governor Raghuram Rajan recently said the selection panel felt that some of the applicants were better placed to serve as differentiated banks.
Jalan backs RBI?s banking nod for IDFC, Bandhan
There is no contradiction in the apex bank?s ?principle of financial inclusion? and awarding full-fledged banking licences
Written by FE News DeskFE Bureau
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This article was first uploaded on April fifteen, twenty fourteen, at thirty-five minutes past four in the morning.